Traditional commercial banks will have to close their Islamic banking wings, and only the full-fledged Islamic banks will be allowed to offer the shariah-based services.

If commercial banks offer Islamic banking along with traditional services, the main spirit of the Islamic banking is hampered, a finance ministry official said.

The change has been incorporated in the amendment to the Banking Companies Act, which is likely to be placed in a cabinet meeting today for approval.

The law will also have stringent measures to curb frauds in fund collection from people in the name of deposits, and scams in the banking sector.

If any non-bank organisation collects deposits from the public, it will have to take approval from the central bank, according to the proposed amendment.

Bangladesh Bank will also monitor the activities of these organisations and take punitive measures against them if any irregularity is detected.

The ministry official said the changes will be included in the amendment as different organisations, including Destiny, collected deposits from their members and later embezzled the funds.

No bank will be allowed to appoint more than 15 directors, but the new banks will get two years to bring down the number of their directors.

Over the last decade, successive governments took a number of initiatives to limit the number of directors on the board to ensure sound corporate governance and discipline. But the moves fell flat due to pressures from influential bank owners.

The existing law does not specify the number of directors.

During the time of the last BNP government, the central bank set the maximum number of directors at 13 but could not implement the directive as the provision was not included in the Banking Companies Act.

The proposed amendment also empowers the BB to remove any chief executive officer of the state banks.

Under the existing Act, the power of removing the chairmen, directors and other high officials, including the managing directors of state-run and specialised banks, remains in the hand of the government.

The existing Act says the BB can remove the chairman, any director or official of all commercial banks on charges of irregularities, except for the government-nominated chairman, director or chief executive.

In case of irregularities by any government-nominated official, the BB can only submit a report to the government for its consideration.

Besides, the banks' exposure to the capital market is being lowered to 25 percent of their regulatory capital. The existing law allows banks to invest 10 percent of their deposit in the stockmarket.

Bangladesh Bank Governor Dr Atiur Rahman Saturday called upon the banks and financial institutions to expand their CSR practices to contribute more towards the country’s socio-economic development.

He also said proper human resources development is key to the country’s social, economic and technological development.

“Proper education is needed to develop human resources,” he added.

Dr Atiur Rahman said the present government considers the human resources development as an integral part for building a knowledge-based “Digital Bangladesh”.

The BB governor made the remarks while speaking at a function arranged to distribute scholarships among a number of students at Institute of Diploma Engineers, Bangladesh (IDEB) at Kakrail in the city.

National Credit and Commerce (NCC) Bank is funding the scholarship scheme for the SSC and HSC level students.

During the function, some 250 students received scholarships from NCC Bank as part of a CSR initiative by the bank.

While addressing the function, Dr Atiur said such initiatives for granting scholarships to the poor and meritorious students from across the country will play an important role for building a knowledge-based nation.

Praising the banks’ corporate social responsibility (CSR) activities across the country, the BB governor said the importance of CSR initiatives is increasing day by day.

As a social commitment, it is a pre-condition for the development of trade and commerce of the country, he added.

Since the banks are making profits from people’s contribution, the banks also should do something for the development of the unprivileged people of the society with a small portion of their profit, Atiur observed.

Bangladesh Bank is laying more emphasis on CSR activities by the banks and financial institutions, the governor said.

He said Bangladesh Bank is pledged-bound to establish itself as a “human central bank”. “We’re trying to move forward the country’s banking sector with a human face.”

Atiur said though the CSR is not mandatory for the banks, such activities are being scrutinised to determine their position as per ‘CAMEL Rating’ in order to create a competition among the banks.

He also suggested the banks to take CSR schemes under specific and well designed plan, saying that CSR activities would yield a good result for banks at the end.

The BB governor also pointed out that a major portion of brilliant students across the country are being deprived from pursuing higher education due to lack of financial solvency.

The central bank introduced a CSR rating for the country’s banking sector in 2008 to encourage the banks to contribute more to different social activities.

Banks’ CSR spending increased to Tk 3.05 billion in 2012 from Tk 410 million in 2008.

Dr AHM Habibur Rahman, Chairman, Sonali Bank, seen with other officials of the bank at the bank’s annual conference at Bidyut Bhaban in Dhaka recently.

Sonali Bank Limited held its annual confereace at Bidyut Bhaban in Dhaka recently.

Dr AHM Habibur Rahman, Chairman, Sonali Bank, presided over the conference as chief guest, said a press release.

Sekhor Dautta, Md Nozibur Rahman, Md Mahbub Hassain, Md Saheb Ali Mridha, Md Anamul Haq Chowdhury and Kazi Toriqul Islam, Directors of the bank, attended the conference as special guests.

SA Farooqui, Managing Director, Standard Bank Limited, seen along other officials of the bank at the bank’s yearly business conference-2013, at a hotel in Dhaka Saturday.

Standard Bank Limited organised its yearly business conference-2013 at a hotel in Dhaka Saturday.
SA Farooqui, Managing Director of the bank presided over the function,

said a press release Sunday
Kazi Akram Uddin Ahmed, Chairman of the bank and president of FBCCI was present at the function as chief guest.

Executive Committee Chairman Mohammed Abdul Aziz,

Audit Committee Chairman Sahazada Syed Nizamuddin Ahmed, directors Ferozur Rahman, SAM Hossain and Abdul Ahad were present as special guests.

Additional Managing Director Md. Nazmus Salehin, Deputy Managing Directors Md. Abul Hossain and DMD and Group Company Secretary AFM Nizamul Islam Chowdhury,

branch managers from all over the country were present.